The recent cyberattacks on CDK Global have thrown the automotive industry into disarray, affecting thousands of retailers nationwide. Dealers are grappling with significant operational disruptions as they revert to manual processes. In an exclusive interview with CBT News, NAMAD Chairman Damian Mills and Vice Chairman Damon Lester discuss the profound impact on their businesses and share insights on navigating this crisis.
Takeaways
- The cyberattack has forced dealers to revert to manual processes, causing widespread disruptions in daily operations. Mills highlighted how every part of the business, from selling services and parts to accounting and vehicle registration, has been affected. Dealers are utilizing old methods from the pre-digital era, such as handwriting documents and manually processing transactions, to keep operations running.
- The financial impact of the outage is substantial, with some dealers reporting losses of up to a million dollars an hour. Mills emphasized the difficulty for smaller, first-generation dealers who rely heavily on consistent cash flow to manage payroll and operational costs. The situation underscores the importance of expense management and the need for diversified processes to mitigate such risks in the future.
- Both Mills and Lester stressed the necessity for better industry preparedness and support from CDK Global. They called for more empathy and proactive communication from CDK representatives, likening it to how dealers must maintain strong customer relationships. The interview also highlighted the need for robust security measures and contingency plans to prevent such extensive disruptions in the future.
Check out our full coverage of the CDK cyberattack here.
"We are adapting and overcoming as much as we can, Jim. This challenge has shown the resilience of dealers across the country." – Damon Lester
